Exports and imports in China shot up more than 10% in January compared to the year earlier, calming fears about economic malaise even as it elicited some skepticism about the accuracy of the country’s trade data.
Analysts had expected a 0.1 percent growth in exports from China after a meager 4.3% December year-over-year rise, but the breakout January export rise of 10.6% suggests a recovery of demand among western importing economies, reports The Wall Street Journal. China manufacturing data released last month sparked fears that the country was sliding into a contraction, but the latest export results indicate market strength despite the stifling effect of the Chinese Lunar New Year holiday.
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In addition, imports strengthened more than expected in China, with the inflow of goods from commodity producers like Australia and Brazil growing 10% in January.
Chinese businesses have been known to overstate the value of their shipments to bypass China’s strict capital controls, and some analysts expressed doubts about the reliability of the data.
[WSJ]
